Some Individuals Are Unexpected Participants of New Tax Code

One of the largest unintended consequences of the tax overhaul is its effect on U.S. individuals who own foreign corporations and will have to pay a tax even though they aren’t tied to the country. 

“I think congress was considering very heavily the impact of large corporations holding assets and holding income abroad and not considering the average person who might have a foreign corporation, especially a U.S. citizen who might live and work abroad, have a foreign corporation, have no tie whatsoever with the U.S.,” Dianne C. Mehany, a member at Caplin & Drysdale, told Bloomberg Tax.